HomeMy WebLinkAbout24-2389ORDINANCE NO. 24-2389
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING ORDINANCE NO.
2010-316 CONCERNING TAX INCREMENT REINVESTMENT ZONE NUMBER ONE,
CITY OF DENTON, TEXAS, ESTABLISHED PURSUANT TO CHAPTER 311 OF THE
TEXAS TAX CODE, BY EXPANDING THE BOUNDARIES AND EXTENDING THE
TERM OF TAX INCREMENT FINANCING REINVESTMENT ZONE NUMBER ONE,
CITY OF DENTON, TEXAS; AND PROVIDING AN EFFECTIVE DATE
WHEREAS, on December 7, 2010, the City Council of the City of Denton, Texas (the
“City”), pursuant to Chapter 311 of the Texas Tax Code, approved Ordinance No. 2010-3 16
designating a contiguous geographic area (the “Original Boundaries”) within the City as a Tax
Increment Financing Reinvestment Zone Number One, City of Denton, Texas (the “Zone”); and
WHEREAS, the City Council of the City of Denton, Texas, now desires to amend
Reinvestment Zone Number One, City of Denton, Texas, to expand the boundaries (“TIRZ IA”);
and
WHEREAS, upon approval of this Ordinance, Tax Increment Financing Reinvestment
Zone Number One, City of Denton, Texas, will consist of contiguous land, as described and
depicted in Exhibits “A” and “B” of this Ordinance, a copy of which is attached hereto and is
incorporated herein for all purposes; and
WHEREAS, Section 311.011 (e) of the Texas Tax Code, in pertinent part provides, “[i]f
an amendment reduces or increases the geographic area of the zone, increases the amount of
bonded indebtedness to be incurred, increases or decreases the percentage of a tax increment to be
contributed by a taxing unit, increases the total estimated project costs, or designates additional
property in the zone to be acquired by the municipality or county, the approval must be by
ordinance or order, as applicable, adopted after a public hearing that satisfies the procedural
requirements of Sections 311.003(c) and (d);” and
WHEREAS, pursuant to and as required by the Chapter 3 11 of the Texas Tax Code, the
City has prepared a Preliminary Amended Reinvestment Zone Project Plan and Financing Plan for
Reinvestment Zone Number One, City of Denton, Texas, attached as Exhibit “C” (hereinafter
referred to as the “Preliminary Amended Project and Finance Plan”) for a proposed tax increment
reinvestment zone containing the real property within the Zone and will be approved at a later
meeting of the City Council of the City; and
WHEREAS, notice of the public hearing on the expansion of the proposed zone
was published in a newspaper having general circulation in the City on November 24, 2024
which date is before the seventh (7th) day before the public hearing held on December 3, 2024;
and
WHEREAS, at the public hearing on December 3, 2024, interested persons were allowed
to speak for or against the expansion, and the concept of tax increment financing, and owners
of property in the proposed Zone were given a reasonable opportunity to protest the inclusion
of their property in the Zone; the public hearing was held in full accordance with Section
311.003(c) of the Texas Tax Code; and
WHEREAS, evidence was received and presented at the public hearing on December 3,
2024, and in favor of the amendment of the Zone; and
WHEREAS, after all comments and evidence, both written and oral, were received by
the City Council, the public hearing was closed on December 3, 2024; and
WHEREAS, the City has taken all actions required to amend the Zone including, but not
limited to, all actions required by the home-rule Charter of the City, the Texas Tax Code, the
Texas Open Meetings Act, and all other laws applicable to the creation of the Zone; and
WHEREAS, the percentage of the property in the combined proposed expanded zone
boundaries and existing zone boundaries, excluding property that is public owned, that is used
for residential purposes is less than thirty percent; and
WHEREAS, the percentage of the total appraised value of the combined proposed
expanded zone boundaries and the existing zone boundaries, is less than 25 percent of the total
appraised value of the taxable real property in the municipality and in the industrial districts
created by the municipality; and
WHEREAS, a Preliminary Amended Project and Finance Plan has been prepared for
the reinvestment zone; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. RECITALS INCORPORATED.
The facts and recitations contained in the preamble of this ordinance are hereby found and
declared to be true and correct.
SECTION 2. FINDINGS.
That the City Council, after conducting the above described hearing and having heard the
evidence and testimony presented at the hearing, has made the following findings and
determined based on the evidence and testimony presented to it:
(a) That the public hearing on the expansion of the boundaries has been properly called, held,
and conducted and that notice of such hearing has been published as required by law; and
(b) That the reinvestment zone with boundaries as described and depicted in Exhibits “,4” and
“B” will result in benefits to the City, its residents and property owners, in general, and to the
property, residents, and property owners in the reinvestment zone; and
(c) That the reinvestment zone, as defined in Exhibits “,4” and “B” , meets the criteria for the
creation of a reinvestment zone set forth in Chapter 3 11 of the Texas Tax Code in that:
1. It is a geographic area located within the City limits of the City; and
2. It meets the criteria and requirements of Section 311.005 of the Texas Tax Code because
the proposed zone is predominantly open and, because of obsolete platting, deterioration of
structures or site improvements, or other factors, substantially impair or arrest the sound
growth of the City or county.
(d) That 30 percent or less of the property in the proposed expanded boundaries and existing
reinvestment zone boundaries, excluding property dedicated to public use, is currently used
for residential purposes; and
(e) That the total appraised value of all taxable real property in the proposed expanded
reinvestment zone boundaries and the existing zone boundaries according to the most recent
appraisal rolls of the City, together with the total appraised value of taxable real property in all
other existing reinvestment zones within the City, according to the most recent appraisal rolls
of the City, does not exceed 25 percent of the current total appraised value of taxable real
property in the City and in the industrial districts created by the City, if any; and
(f) That the improvements in the proposed reinvestment zone will significantly enhance the value
of all taxable real property in the proposed reinvestment zone and will be of general benefit
to the City and county; and
(g) That the development or redevelopment of the property in the proposed reinvestment zone
will not occur solely through private investment in the reasonable foreseeable future.
SECTION 3. DURATION OF THE ZONE.
That the expanded Zone, TIRZ IA, shall take effect immediately upon the passage and approval
of this ordinance, consistent with Section 311.004(a)(3) of the Texas Tax Code. Termination of
the Original Boundaries of the Zone shall occur upon any of the following: (i) on December 31,
2040 (with the final year’s tax increment to be collected by September 1, 2041); (ii) at an earlier
time designated by subsequent ordinance; (iii) at such time, subsequent to the issuance of tax
increment bonds, if any, that all project costs, tax increment bonds, notes and other obligations of
the Zone, and the interest thereon, have been paid in full, in accordance with Section 311.017 of
the Texas Tax Code. Termination of the expanded boundaries of the Zone, TIRZ IA, shall occur
upon any of the following: (i) on December 31, 2040 (with the final year’s tax increment to be
collected by September 1, 2041); (ii) at an earlier time designated by subsequent ordinance; (iii)
at such time, subsequent to the issuance of tax increment bonds, if any, that all project costs, tax
increment bonds, notes and other obligations of the Zone, and the interest thereon, have been paid
in full, in accordance with Section 3 11.017 of the Texas Tax Code.
SECTION 4. TAX INCREMENT BASE AND TAX INCREMENT.
That the tax increment base for the Original Boundaries of the Zone, as defined by Section
311.012(c) of the Texas Tax Code, shall be the total appraised value of all real property in the
Zone taxable by a taxing unit, determined as of January 1, 2010, which is the year in which the
Zone was originally designated as a reinvestment zone, as defined by Section 3 11.0123 .
The tax increment base for TIRZ IA, the expanded boundaries of the Zone, as defined by Section
311.012(c) of the Texas Tax Code, shall be the total appraised value of all real property in the
Zone taxable by a taxing unit, determined as of January 1, 2024, which is the year in which the
expanded area of the Zone was designated as a reinvestment zone, as defined by Section 3 1 1 .0123 .
For the Original Boundaries and TIRZ IAthe TIF Fund shall consist of (i) the percentage of the
tax increment, as defined by Section 3 1 1 .012(a) of the Texas Tax Code, that each taxing unit which
levies real property taxes in the Zone, other than the City, has elected to dedicate to the TIF Fund
under an agreement with the City authorized by Section 311.013(f) of the Texas Tax Code, and
(ii) ninety percent (90%) of the City’s tax increment generated from 2024 to 2030, and eighty-five
percent (85%) of the City’s tax increment generated from 2031 to 2040, as defined by section
311.012(a) of the Texas Tax Code, subject to any binding agreement executed at any time by the
City that pledges a portion of such tax increment or an amount of other legally available funds
whose calculation is based on receipt of any portion of such tax increment.
SECTION 5. ORDINANCE 2010-316.
Except as modified herein, Ordinance 2010-3 16 remains in full force and effect and applies equally
to the Original Boundaries and the TIRZ IA including, but not limited to, the creation, composition,
and terms of the board of directors of the Zone.
SECTION 6.SEVERABILITY CLAUSE.
Should any section, subsection, sentence, clause or phrase of this ordinance be declared
unconstitutional or invalid by a court of competent jurisdiction, it is expressly provided that any
and all remaining portions of this ordinance shall remain in full force and effect. The City
hereby declares that it would have passed this ordinance, and each section, subsection, clause
or phrase thereof irrespective of the fact that any one or more sections, subsections,
sentences, clauses and phrases be declared unconstitutional or invalid.
SECTION 7. OPEN MEETINGS.
It is hereby found, determined, and declared that sufficient written notice of the date, hour, place
and subject of the meeting of the City Council at which this ordinance was adopted was posted
at a place convenient and readily accessible at all times to the general public at the City Hall of
the City for the time required by law preceding its meeting, as required by Chapter 551 of the
Texas Government Code, and that this meeting has been open to the public as required by law at
all times during which this ordinance and the subject matter hereof has been discussed, considered
and formally acted upon. The City Council further ratifies, approves and confirms such written
notice and the contents and posting thereof.
SECTION 8. EFFECTIVE DATE.
This ordinance shall take effect immediately upon its adoption and publication in accordance
with and as provided by law and the City Charter. It was motioned by Gerard Hudspeth and
seconded by Jill Jester.
Aye Nay Abstain Absent
Mayor Gerard Hudspeth:
Vicki Byrd, District 1 :
Brian Beck, District 2:
Paul Meltzer. District 3 :
Joe Holland. District 4:
Brandon Chase McGee, At Large Place 5 :
Jill Jester, At Large Place 6:
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PASSED AND APPROVED this 3rd day of December, 2024.
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ATTEST:
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APPROVED AS TO FORM:
Scott Bray
Deputy City Attorney
Mack Reinwand, City Attorney
Exhibit A
Legal Description TIRZ #1 - Original Boundaries
Beginning at the southwest corner of the ROW intersection of Carroll Blvd. and Sycamore, the
POINT OF BEGINNING;
THENCE, north along the west ROW of Carroll Blvd. to the northwest corner of the ROW
intersection of Carroll Blvd. and W. Parkway Street;
THENCE, east along the north ROW of W. Parkway Street to the northeast corner of the ROW
intersection of W. Parkway Street and Locust;
THENCE, south along the east ROW of Locust to the north ROW of McKinney;
THENCE, east along the north ROW of McKinney to a point directly north of the southeast
corner of the ROW intersection of McKinney and N. Bradshaw Street;
THENCE, south across McKinney and continuing south along the east ROW of N. Bradshaw
Street continuing directly south across E. Hickory Street to the south ROW of E. Hickory Street;
THENCE, west along the south ROW of E. Hickory Street to the northeast corner of a tract in
the Fred Hill Addition, Block A, Lot 1 ;
THENCE, south and east following the property line of a tract in the Fred Hill Addition, Block
A, Lot 1 to the northwest corner of a 1.406 acre tract, Al184A H. Cisco, Tract 14;
THENCE, south along the west property line of a 1.406 acre tract, Al 184A H. Cisco, Tract 14 to
its intersection with the north property line of a 1.694 acre tract Al 184A H. Cisco, Tract 15 ;
THENCE, west and south along the north and west property line of a 1.694 acre tract Al 184A H.
Cisco, Tract 15 to the northwest corner of a 0.16 acre tract, Al184A H. Cisco, Tract 20;
THENCE, south along the west property line of a 0.16 acre tract, Al 184A H. Cisco, Tract 20 to
the north ROW of Sycamore;
THENCE, directly south across Sycamore to the south ROW of Sycamore;
THENCE, west along the south ROW of Sycamore to the northwest corner of the Oakwood
Cemetery ;
THENCE, south along the west property line of the Oakwood Cemetery to the north ROW of
Prairie;
THENCE, directly south across Prairie to the south ROW of Prairie;
THENCE, west along the south ROW of Prairie to the southwest corner of the ROW intersection
of Prairie and Elm;
THENCE, north along the west ROW of Elm to the south ROW of Sycamore;
THENCE, west along the south ROW of Sycamore to the southwest corner of the ROW
intersection of Sycamore and Carroll Blvd. and the POINT OF BEGINNING, and containing a
total area of approximately 225.73 acres.
Exhibit A (Continued)
Legal Description TIRZ #1 A - Expanded Boundaries
Beginning at the point where the southern right of way of W Hickory Street meets the northwest
corner of Property ID 35600, thence
North across W Hickory Street to the point the northern right of way boundary of W Hickory
Street meets the southern boundary of Property ID 30923, thence
East along the northern right of way boundary of W Hickory Street to the point it meets the
western right of way boundary S Carroll Boulevard, thence
North along the western right of way boundary S Carroll Boulevard to the point it meets the
southern right of way boundary of University Drive, thence
East across University Drive to the eastern right of way boundary of S Carroll Boulevard, thence
South along the eastern right of way boundary of S Carroll Boulevard to the point it meets the
northern right of way boundary of Congress Street, thence
East along the northern right of way boundary of Congress Street to the point it meets the
western right of way boundary of Bolivar Street, thence
North along the western right of way boundary of Bolivar Street to the point it meets the
southeast corner of Property ID 28443, thence
East across Bolivar Street to the northwest corner of Property ID 33996, thence
East across the northern boundary of Property ID 33996 to the point it meets Property ID 33958,
thence
East and then north along the boundary of Property ID 33958 to the point it meets the southwest
corner of Property ID 33948, thence
North along the western boundary of Property ID 33948 to the point it meets the southwest
corner of Property ID 33939, thence
North along the western boundary of Property ID 33939 to the point it meets the southwest
corner of Property ID 33926, thence
North along the western boundary of Property ID 33926 to the point it meets the southwest
corner of Property ID 1073 15, thence
North along the western boundary of Property ID 107315, continuing east along the northern
boundary of Property ID 1073 15 to the point it meets the western right of way boundary of N
Elm Street, thence
East across N Elm Street to the northwest corner of Property ID 27048, thence
East along the northern boundary of Property ID 27048 to the point it meets the northwest corner
of Property ID 27054, thence
East along the northern boundary of Property ID 27054, continuing east to the northwest corner
of Property ID 27056, thence
Exhibit A (Continued)
East along the northern boundary of Property ID 27056 to the point it meets the western right of
way boundary of N Locust Street, thence
East across N Locust Street to the southwest corner of Property ID 33767, thence
South along the eastern right of way boundary of N Locust Street to the point it meets the
northern right of way boundary of Marshall Street, thence
East along the northern right of way boundary of Marshall Street to the point it meets the
southeast corner of Property ID 33746, thence
South across Marshall Street to the northeast corner of Property ID 33741, thence
South along the eastern boundary of Property ID 33741, continuing south along the eastern
boundaries of Property IDs 33739, 33737, and 33733 to the point the southeast corner of
Property ID 33733 meets the northern right of way boundary of E Congress Street, thence
East along the northern right of way boundary of E Congress Street to the point it meets the
western right of way boundary of Oakland Street, thence
North along the western right of way boundary of Oakland Street to the point it meets the
northern right of way boundary of Withers Street, thence
East along the northern right of way boundary of Withers Street to the point it meets the western
right of way boundary ofMingo Road, thence
East across Mingo Road to the point the eastern right of way boundary ofMingo Road meets the
western right of way boundary of the Union Pacific railroad, thence
South along the western right of way boundary of the Union Pacific railroad to the point it meets
the northern right of way boundary of McKinney Street, thence
West along the northern right of way boundary of McKinney Street to the point it meets the
eastern right of way boundary of Locust Street, thence
North along the eastern right of way boundary of Locust Street to the point it meets the northern
right of way boundary of Parkway Street, thence
West along the northern right of way boundary of Parkway Street to the point it meets the
western right of way boundary ofCaroll Boulevard, thence
South along the western right of way boundary of Caroll Boulevard to the point it meets the
southern right of way boundary of Sycamore Street, thence
East along the southern right of way boundary of Sycamore Street to the point it meets the
western right of way boundary of S Elm Street, thence
South along the western right of way boundary of S Elm Street to the point it meets the southern
right of way boundary of Prairie Street, thence
East along the southern right of way boundary of Prairie Street to the point it meets the northeast
corner of Property ID 33238, thence
Exhibit A (Continued)
South along the eastern boundary of Property ID 33238, continuing west across the Union
Pacific railroad to the point the southern boundary of 33238 meets the western right of way
boundary of the Union Pacific railroad, thence
South along the western right of way boundary of the Union Pacific railroad to the point it meets
the southern point of Property ID 35771, thence
West across S Locust Street to the point the western right of way boundary of S Locust Street
meets the southern right of way boundary of W Collins Street, thence
West along the southern right of way boundary of W Collins Street to the point it meets the
eastern right of way of Fort Worth Drive, thence
South along the eastern right of way of Fort Worth Drive to the point it meets the western right
of way of S Carroll Boulevard, thence
North across W Collings, continuing north along the western right of way of S Carroll Boulevard
to the point it meets the northern right of way boundary of W Highland Street, thence
West along the northern right of way boundary of W Highland Street to the point it meets the
southwest corner of Property ID 33655, thence
North along the western boundary of Property ID 33655 to the point it meets the southwest
corner of Property ID 33653, thence
North along the western boundary of Property ID 33653 to the point it meets the southwest
corner of Property ID 25679, thence
North along the western boundary of Property ID 25679 to the point it meets the southwest
corner of Property ID 126455, thence
North along the western boundary of Property ID 126455 to the point it meets the southern right
of way boundary of W Sycamore Street, thence
East along the southern right of way boundary of W Sycamore Street, thence
North across W Sycamore Street to the southwest corner of Property ID 729142, thence
North along the western boundary of Property ID 729142 to the point it meets the southwest
corner of Property ID 34051, thence
North along the western boundary of Property ID 34051 to the point it meets the southern right
of way boundary of W Mulberry Street, thence
West along the southern right of way boundary of W Mulberry Street, thence
North across W Mulberry Street to the southwest corner of Property ID 34023, thence
North along the western boundary of Property ID 34023 to the point it meets the southwest
corner of Property ID 16175 1 , thence
North along the western boundary of Property ID 161751 to the point it meets the southwest
corner of Property ID 35600, thence
Exhibit A (Continued)
North along the western boundary of Property ID 35600 to the point where the southern right of
way of W Hickory Street meets the northwest corner of Property ID 35600, which is the point of
beginning.
Exhibit B
Boundary Map
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Exhibit C
Preliminary Amended Project and Financing Plan
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